From: tzarros@ccs.carleton.ca (Theodore Zarros) Subject: News (in ENGLISH)- Thu, 28 Jul 1994 (Greek Press Office BBS, Ottawa). * PM: Convergence Plan will keep Greece on EMU track * Evert * Samaras * Papariga * Synaspismos statement * OA bail-out approved by EU Commission * Arsenis back from Moscow, agreement signed provides room for other participants * State Department official to visit Thessaloniki, Athens * Greece adamant on linking EU Albania aid to human rights * Sussmuth * EU can supplement Vance Skopje mission - Venizelos * Greek-Australian official to visit Greece * Thessaloniki mayor to run for re-election * Antonis Lentakis Pol.An candidate * House to debate OTE 850 mil, 5year development plan * Commercial Bank to establish affiliate in southern Russia Athens News Agency Bulletin, PM: Convergence Plan will keep Greece on EMU track --------------------------------------------------- Athens, 28 July 1994 (ANA): Prime Minister Andreas Papandreou said yesterday the economic convergence plan of his socialist government would keep Greece on the track of the European Monetary Union. "The programme reflects the government's determination to keep Greece in line with the course of the European Union," Mr. Papandreou said. "It is the tool that will close the gap between the growth rates of Greece and other European countries," he told a parliamentary debate. Mr. Papandreou said the programme would improve competition, modernise the state and instil national credibility. The five-year programme, submitted for European Commission approval in June, aimed at gradually attaining high rates of development and reducing inflationary pressures by narrowing deficits and increasing public and private investment. Public deficits and the public debt would be reduced by increasing state revenue which, in turn, would be achieved by strict implementation of recently enacted tax legislation, cuts in state spending and public corporation share sales. The programme aims at bringing inflation down to 7.9 percent in 1995, 6.1 percent in 1996, 3.9 percent in 1997, 3.5 percent in 1998 and 3.3 percent in 1999. Wage increases will be limited to 8.4 percent in 1995, 6.5 percent in 1996, 4.6 percent in 1997, 4.3 percent in 1998 and 4.2 percent in 1999. State revenue will increase from 8.2 trillion drachmas in 1994 to an anticipated 12.8 trillion drachmas in 1999. Revenue from sale of public corporation shares in the three-year period 1994-6 is expected to total 450 billion drachmas. Borrowing requirements will be trimmed from 13.2 percent of GDP in 1994 to 2.4 percent in 1999. According to the programme, the public debt which represents 112 percent of GDP in 1994 will be restricted to 103.4 percent in 1999. Direct taxes will be increased from 5.4 percent of GDP in 1993 to 7.1 percent in 1999, while indirect taxation will rise by two percentage units of GDP during the same period. Mr. Papandreou said the programme rested on the following three axes: - Removing macroeconomic imbalances with policies and measures on reducing the fiscal deficit and curbing inflation and the force of the public debt. - Improving the competitiveness of the economy with policies and measures on economic recovery, restructuring production and modernising public enterprises and the credit system. - Achieving institutional modernisation and consolidating a welfare state, decentralisation, administrative reform and access to high-quality services for all Greeks, especially in education and welfare. Mr. Papandreou said the programme has been drawn up with national criteria and targets to keep Greece on a common European course, close the gap in growth levels between the Greek and European economies and considerably improve the position of labour. All this, he said, would be achieved with systematic effort, appropriate options and socially acceptable procedures. He said the programme's crucial targets included the need to achieve criteria of nominal convergence, reduce inflation, curb the public deficit, stabilise the exchange parity and satisfactorily lower the ratio of debt to GDP. Referring to efforts to reduce inflation, Mr. Papandreou said the government's counter-inflationary campaign was reflected by counter-inflationary exchange and monetary policy and an incomes policy safeguarding actual incomes but remaining within the limits of the economy's endurance. Elaborating further on the programme, Mr. Papandreou said new stable jobs will be created, salaries will be above inflation levels and an actual increase in incomes will be achieved, and labour would benefit from the 3.4 trillion dr. under the Community Support Framework (CSF) for education and the quality of life of every working person will be upgraded with projects already started and those due to start soon. Mr. Papandreou forecast an increase in income per capita for labour over the six-year period from 1994-1999 while farmers' income will remain stable in relation to GDP. Replying to criticism by the opposition (on the stabilisation of farmers' incomes), Mr. Papandreou said it will entail considerable improvement since the policy applied by the New Democracy government over the four-year period between 1990-1993 resulted in farmers' income decreasing at an average rate of 3.5 per cent in relation to GDP. Farmers' income is expected to be also supported by regional development, entailing additional revenue from non-agricultural activities for residents in rural areas. Mr. Papandreou reiterated his optimism over the Greek economy's course despite great difficulties it is facing. He called on the opposition to agree to constructive dialogue, adding that barren criticism has no place in such a debate and will not influence the government which, on the contrary, is prepared to take proposals on improving parts of the programme into serious consideration. Evert ------ Athens, 28 July 1994 (ANA): Strong objections to the plan were voiced by New Democracy party leader Miltiades Evert, who accused the Prime Minister of making predictions rather than providing concrete solutions to the country's dire economic condition. "Mr Papandreou portrayed the image of a prophet predicting without explaining how the country can come out of its current economic impasse," he said. Mr Evert expressed pessimism for Greek economy prospects based on the Convergence Programme, which, he said, should be more aptly described as "divergence". He predicted an increase in unemployment and future social upheaval if labour's real incomes are not raised and fresh taxes were imposed. Samaras -------- Athens, 28 July 1994 (ANA): Political Spring (Pol.An) party leader Antonis Samaras said the government's convergence programme was based on one-track reasoning to increase revenue, lacking all trace of development prospects and reliability. He predicted the imposition of new taxes and spoke of a 10-year old austerity error. The government, he added, refuses to treat the economy as an issue of national importance, requiring immediate solution. We must recruit productive resources to avoid more lost decades through the mistakes of old parties. Papariga --------- Athens, 28 July 1994 (ANA): Communist Party of Greece (KKE) Secretary-General Aleka Papariga said convergence had an unpopular connotation to it. She added that the five-year period ahead would be crucial and decisive, and unless Greece resisted it would there would be widespread conquests and a return to the Middle Ages. Ms. Papariga said Greece should draw away from commitments imposed on it, adding the government knew that under the current policy the country would not exit the vicious circle of crisis. Synaspismos statement ---------------------- Athens, 28 July 1994 (ANA): The government Convergence Programme is in a state of political and economic abeyance, a Coalition of the Left (Synaspismos) statement said. The debate, adds the statement, does not substitute for the required political and social dialogue. SYN urges the government to make both its intentions and policy clear, and acknowledge that no society with an under-utilised productive base and dislocated institutional functions can possibly converge with other more developed ones. SYN is not represented in Parliament. OA bail-out approved by EU Commission -------------------------------------- Brussels, (ANA/V.Demiris): The European Commission yesterday approved a 545 billion dr. bail-out of Olympic Airways by the Greek Government, as part of a restructuring plan in the period 1994-1997. Arsenis back from Moscow, agreement signed provides room for other participants -------------------------------------------------------- Athens, 28 July 1994 (ANA): National Defence Minister Gerasimos Arsenis returned to Athens from Moscow yesterday, declaring he was "particularly satisfied" with results of his visit to Russia. Summing up results in three parts, Mr. Arsenis said communication channels had been established between the defence ministries of the two countries on issues concerning developments in the Balkans, adding views on the Bosnia issue coincided. He said the agreement signed laid foundations for broad co-operation on defence, training issues and carrying out joint exercises from the Black Sea to the Mediterranean with the possible participation of other countries. Mr. Arsenis also said the way had been paved for promoting co-operation between defence industries in both countries. He assessed that his meetings with his US and Russian counterparts and future visits to two Balkan countries, Israel and two Arab countries will complete a network of defence agreements and co-operation before the start of winter, supporting foreign policy in a broad region. Replying to a press question on developments in Bosnia, Mr. Arsenis said he was not particularly optimistic, adding that efforts should be made for a calm summer. State Department official to visit Thessaloniki, Athens -------------------------------------------------------- Athens, 28 July 1994 (ANA): The chief of the US State Department South European Affairs section, Marshall Ander, begins a six-day visit to Thessaloniki and Athens tomorrow. He is scheduled to confer with government officials in both cities. Greece adamant on linking EU Albania aid to human rights --------------------------------------------------------- Brussels, (ANA/M.Savva, F.Stangos, P.Stangos): Greece yesterday remained adamant on linking European Union economic aid to Albania with respect for human rights of the ethnic Greek minority in that country. The matter was re-examined at yesterday's Finance Ministers' (ECOFIN) meeting, due to objections against including political conditions for respect of human rights and democratisation in the legal document (Community Regulation) to accompany the political decision for granting aid. The Greek delegation, headed by Finance Under-secretary D. Georgakopoulos, insisted on incorporation of political conditions, as stipulated in the conclusions of the Council of Ministers meeting on July 18. At that meeting, Greek Foreign Under-secretary Yiannos Kranidiotis had agreed to disbursement of aid in two instalments of 15 million and 20 million ECU's respectively, on condition that, in parallel with the granting of the first instalment, the German Presidency should lodge a demarche with Albanian authorities, expressing European Union concern on the human rights situation and democratisation process in that country. Disbursement of the second instalment is linked with the preparing a report by the European Commission on Albania's "real financial aid needs, as well as fulfilment of commitments on respect for human rights". Disbursement of the second instalment would require a unanimous decision by the Council of Ministers. The controversy regarding application of the July 18 conclusions arose yesterday at the Council of Permanent Representatives (COREPER), following a Commission objection to the incorporation of political conditions in a legal document on a "matter of principle". German Presidency compromise proposals envisaging separate publication of political conditions and the legal document in the Official Journal of the European Communities, as well as the signing of a Memorandum of Understanding carrying conditions between the EU and Albania, were not considered satisfactory by the Greek side. The next Council of Ministers will meet in September, but in case the stalemate is removed earlier, disbursement may be formally approved through a written procedure between member-states within August. Sussmuth -------- Athens, 28 July 1994 (ANA): German Parliament President Rita Sussmuth, speaking yesterday in the Albanian parliament, referred to the need for respect for the human rights of the Greek minority. "Just as three million Albanians living outside the borders of the country, mainly in Kosovo, have to be protected, so does the Greek minority in southern Albania," she said. Ms Sussmuth, considered as belonging to the 'enlightened' wing of the Christian Democratic Party, said the treatment of minorities was a "key" issue for the safeguarding of stability in the Balkans and the warding off of "dangerous nationalisms". It is noted that her visit to Albania comes in the wake of a German announcement for the granting of economic aid to the tune of DM 50 million at bilateral level, apart from the aid which Greece has sought to link with political conditions. EU can supplement Vance Skopje mission - Venizelos ------------------------------------------------ Athens, 28 July 1994 (ANA): Government spokesman Evangelos Venizelos reminded reporters yesterday that Greece welcomes any European Union initiative on the Former Yugoslav Republic of Macedonia issue, provided it should serve as a supplement to United Nations mediator Cyrus Vance's mission in the framework of a Security Council decision. Mr. Venizelos added the UN-sponsored dialogue between Greece and FYROM had been postponed at the FYROM government's request. He added that carrying on dialogue rested on the "will of all parties concerned". Greek-Australian official to visit Greece ------------------------------------------ Melbourne, (ANA/S.Hatzimanolis): Demetrios Dollis, the ethnic Greek deputy chief of the Labour Party of Australia's Victoria state, left yesterday for Greece, on invitation from the Greek government. Mr. Dollis, the first ethnic Greek politician to hold the Labour Party post of deputy chief, was born in the north-western Greek town of Kastoria and emigrated to Australia when he was a teenager. A leader in promoting Greek issues in Australia, Mr. Dollis will meet with government ministers during his stay in Greece. Meanwhile, his home province Victoria has decided to adopt the word "Slavomacedonian" to define the language spoken by Former Yugoslav Republic of Macedonia ethnics. Jeff Kenett, the governor of the province, told ANA that today a related newsletter on adoption of the word would be sent out to all ministries and government services. Mr. Kenett said he believes his government is the first in the world to take such an initiative, since the language, he said, is "without a doubt Slavic". Australia is the only country in the world that calls FYROM ethnics "Slavomacedonians," something which has drawn sharp reactions from the latter. Thessaloniki mayor to run for re-election ---------------------------------------- Athens, 28 July 1994 (ANA): Thessaloniki mayor Constantine Kosmopoulos announced yesterday that he would seek re-election. Mr. Kosmopoulos hinted he will run as an independent in October's municipal elections, adding that his "ideological convictions are well-known" and he "will rely on broad-ranging support". He was first elected as Thessaloniki mayor in 1990, on a New Democracy party ticket. Support for Mr. Kosmopoulos' re-election bid is likely to be announced today by the main opposition ND party, when the party Executive and Central Committees meet to discuss, among other things, municipal and prefectural elections. Antonis Lentakis Pol.An candidate --------------------------------- Athens, 28 July 1994 (ANA): Political Spring leader Antonis Samaras said yesterday his party will support Pol.An deputy Andreas Lentakis as party candidate for Athens mayor who, Mr. Samaras said, has a long and successful local government record. Mr. Samaras criticised the ruling Panhellenic Socialist Movement's choice for mayor - Transport and Communication Minister Theodoros Pangalos - for "lack of experience" in local government and for not resigning his post after announcing his candidacy. "PASOK has given a party facet to the elections," Mr. Samaras said, "by selecting a candidate for mayor one of its leaders who has no related experience in local government." Meanwhile, the Communist Party of Greece is also expected to choose mayorship candidates for the three largest municipalities (Athens, Piraeus and Thessaloniki). KKE is expected to put forward a candidate by August 1. House to debate OTE 850 mil, 5year development plan ---------------------------------------------------- Athens, 28 July 1994 (ANA): Transport and Communications Under-secretary Dimitris Alambanos yesterday tabled in Parliament a five-year, 850 million drachma development programme for the Hellenic Telecommunications Organisation (OTE). Referring to a motion tabled by main opposition New Democracy party Deputies, Mr. Alambanos told the House the programme will be funded under the Delors II package and other resources. Mr. Alambanos said the government was already going ahead with restructuring OTE to help upgrade telecommunications services offered the public and minimise operational costs. He said a bill would be tabled in a few months on organising telecommunications and establishing a sound and competitive framework. Supporting the motion, ND Deputy Andreas Andrianopoulos termed the government's partial privatisation of OTE a "farce in poor taste." Mr. Andrianopoulos added government practice in telecommunications were "short-sighted, outdated and groundless." Commercial Bank to establish affiliate in southern Russia ---------------------------------------------------------- Athens, 28 July 1994 (ANA): The Commercial Bank of Greece has signed an agreement to establish a new bank - the Investment Bank of Kuban - in southern Russia to begin operating next year, it was announced yesterday. Other shareholders in the new bank include the European Bank for Reconstruction and Development, the Cyprus Development Bank, as well as the two biggest Russian banks in the area -- Kubin Bank and Kubanbank. Headquartered in the city of Krasnodar, the Investment Bank of Kuban will be active in the major Black Sea port of Novorossisk and a broad region around it. The Commercial Bank and the Cyprus Development Bank will have a majority shareholding and control the board of the new bank.